What is a Freight Broker and Why Do You Need One

01 January 2020       Blog

The modern supply chain has more participants leave alone the supplier and the customer. One major party that ensures the efficient transit of goods is a freight broker. Most suppliers and shipping enterprises think it enough to contact a carrier and overlooking the vital role a freight broker plays in the supply chain equation. In this guide, we elaborate who a freight broker is, the kind of service they provide, and why you need one. 

What is a Freight Broker

In simple terms, a freight broker is a liaison between shippers and suppliers in need of transportation carriers. As a shipper, you have your transportation needs most importantly the safe transit of your goods and the assurance that they will arrive within the stipulated time. A carrier also has their needs including pre-planned routes, as well as the type of delivery their trucks need to take in deliver the products. 

The freight broker arranges the deal between the shipper and the carrier, ensuring that there are adequate communication channels established to oversee the execution of the hauling contract. A freight broker worth his or her salt is in a position to negotiate the best rates between the two parties and ensure that the terms of the deal are fair to each party. While it may seem as though it is a cheaper option of hiring the carrier yourself, a freight broker will reduce the time it takes to go through their burgeoning list of reliable that will suit your needs. It also lowers the transportation costs since they know the proper freight rates, whom to talk to and get you the best deal.

When Do You Need One

A freight broker is the best person to navigate the obstacles of planning, long-distance hauling, as well as choosing the best and easiest route for the goods to arrive at the intended destination. More so, an experienced freight broker is in a position to offer consultancy services that will help you optimize the best mode of shipping your product. Here are reasons why you need a freight broker.

Lower Transportation Costs

Transportation costs can drive up the costs of the trading process, and this means that you get lower profits when using a freight broker. Your current carrier could be charging you too much and taking advantage that you know little about the transportation. A freight broker will do all the heavy lifting and select the best service provider from their network of carriers that matches to your freight budget.

Need More Capacity

While in the course of business, you will need to add more carriers to what you already have or change your current provider to one that offers the best value for your money. Fielding applications and quotations from potential carriers can bog you down despite the other duties you have to deal with to maintain your business. A freight broker is the best option you have to help you in selecting the most reliable carrier with the kind of efficiency you are looking for to meet your growth expectations. 

How to Pick a Freight Broker

You will need to do in-depth research for a freight broker who will provide the analysis and quality that matches your business needs. It is necessary to look beyond the location and reputation in the industry. The best freight broker needs to be

  • Financially stable
  • A procedure for monitoring, vetting, and selecting their transport carriers
  • Licensed and bonded

In conclusion, you cannot afford to overlook the importance of the role of a freight broker in the supply chain. They will optimize the different shipping modes to help you get the most economical way to deliver your goods efficiently within the set timelines.